suppose that when the price of milk is increased by 25 percent the quantity demanded declines...
suppose that when the price of milk is increased by 25 percent the quantity demanded declines by 20 percent. the coefficient of the demand elasticity is equal to?
please explain how you come to get that answer
Homework Answers
Ed=%change in quantity/%change in price
Ed=-20%/25%
Ed=-0.8
Ed<1 so dand is inelastic.
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